Palm Beach Tan Acquires Desert Sun Tanning Salons

Posted on January 12, 2007 by Ginger Watford

Two Brands Join Together for Tanning Industry Growth

Farmers Branch – Palm Beach Tan, a Dallas based indoor tanning salon chain, announced today the acquisition of the Desert Sun Tanning Salons franchise system. Founded in 1999 and headquartered in Maple Valley, Washington , Desert Sun has 55 franchised locations generating more than $20 million of system-wide revenues throughout the Northwest. An additional 30 salons are currently in development.

Founded in 1990, Palm Beach Tan, a leader in the indoor tanning industry operates 120 franchised and company-owned locations in 16 states. Desert Sun will become a wholly-owned subsidiary of Palm Beach Tan, Inc. and will operate under the Desert Sun brand.

“Desert Sun is a great fit. It is a well known concept on the west coast, which is a targeted area of growth for us,” said Brooks Reed, CEO of Palm Beach Tan. “We want to grow throughout
Washington, California, Oregon and Arizona and look forward to continuing the momentum created by Desert Sun’s team. The merging of these two brands, creates a national indoor tanning company.”

Desert Sun was owned and operated by Maximo Ansola III, a 32-year-old entrepreneur who set out to build an upscale tanning concept designed to create a professional and enjoyable tanning experience for its customers and employees. Ansola will stay involved with the company becoming its largest franchisee and will have a consulting role with the new ownership.

“With Desert Sun’s quick growth, I turned to Palm Beach Tan, a leader in the industry to take Desert Sun to the next level of success,” said Ansola. “Since we’re seeing tanning industry consolidation, it made sense to join forces and take advantage of Palm Beach Tan’s state of the art operating systems, purchasing power and experienced management team. I am excited about participating in this dynamic company’s future.”

Palm Beach Tan will grow the Desert Sun subsidiary through franchising with projections to add 120 additional locations by 2010. Bareq Peshtaz, the former president of Desert Sun, is now named vice president of Franchise Sales.  Palm Beach Tan established a new franchise sales and support office in Maple Valley, Washington and the company will be headquartered in Farmer’s Branch, TX.

About Palm Beach Tan

Founded in 1990, Palm Beach Tan, Inc. has become a leader in the indoor tanning industry, with 52 corporate superstores and has 68 franchised locations in 16 states.

At the heart of Palm Beach Tan’s franchise model is a superstore with 3000 square feet and 20-25 tanning beds. This is 2-3 times the size of a typical tanning salon. The company offers convenience and a full range of services – three levels of tanning beds, UV Free Mystic Tanning, and premium skin care products. Palm Beach Tan offers it’s customers unlimited tanning without contracts or commitments.

About Desert Sun Tanning Salons

Founded in 2001, Desert Sun operates 55 franchise locations, with an additional 30 salons currently in development throughout the west coast. Desert Sun offers a full selection of indoor tanning services, which includes three different varieties of tanning beds, Mystic Tan, sunless tanning creams and other skin care products. Salons are designed to create a warm, inviting environment for its customers. The company is poised for additional growth via a franchise model.